Tuesday, July 20, 2010

Madison Hearing Transcript


Out of curiosity, I went to the Bob Cropp testimony which was all about defending big co-ops. Dr.Cropp begins his defense on page 191. He compares the size of co-ops with big retailers.

Then he talks about the over-order premium negotiated by co-ops on page 194, which he says averaged $2.45. I don't think that is right. See: http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5081678

Here in the Northeast, with high class I use the premium is $1.50. In Wisconsin, with little class I use the premium is $3.52. Where the big co-ops have power there is a small premium. Where there is competition, the premium grows.

1 comment:

  1. I've read most of that transcript and Pete was right when he said the public comment section was loaded with DFA plants. Your comments about Cropp is right on the money too. Hopefully the DOJ has heard enough of the DFA BS already to be able to see through their planted good old boys that talk about their small coop and all they are doing for farmers.